§ Alistair BurtTo ask the Secretary of State for Trade and Industry what plans she has(a) to underwrite insurance premiums and (b) to seek suspension of the operation of airline passenger duty following the events of 11 September. [15621]
§ Ruth Kelly[holding answer 16 November 2001]: I have been asked to reply.
The Government set up a temporary replacement insurance scheme for UK and Isle of Man airlines following the withdrawal of commercial cover for third party liabilities in the wake of the terrorist attacks in the US. The scheme underwrites third party, war and terrorism liabilities above $50 million for the majority of airlines for a commercially based premium, but will waive the premium for airlines that choose to buy $100 million of cover on the commercial insurance market. The scheme was extended for 30 days on the 24 October and will now expire at midnight on the 23 November. If it is clear that adequate commercial insurance has not returned to the market, the scheme will again be renewed.
The Chancellor reviews all taxes in the context of his pre-Budget and Budget statements.